HR6916-119

What This Bill Does

The Federal Program Integrity and Fraud Prevention Act adds a new section 4715 to title 41. It requires individuals convicted of covered federal felonies arising out of an agency contract, grant, cooperative agreement, loan, or other financial assistance to be listed as excluded sources in the System for Award Management Exclusions list for three years.

Covered convictions include federal court judgments, findings of guilt, accepted guilty or nolo contendere pleas, and deferred-prosecution or similar arrangements. Covered felonies include fraud, theft, bribery, embezzlement, false statements, tax evasion, and similar offenses connected to federal funds. The Attorney General must notify the Administrator of General Services of each covered conviction, and GSA must promptly enter the three-year prohibition in SAM.

The bill lets an agency head waive the prohibition in a particular case if the agency head makes a written determination that the exemption is warranted. Each written exemption must be transmitted to Congress immediately. DOJ, in consultation with GSA, must issue implementation and compliance guidance within one year of enactment.

Who Benefits and How

Federal taxpayers benefit because people convicted of federal assistance fraud are barred from receiving covered federal awards for three years. Contracting officers benefit because SAM exclusions provide a centralized award-screening signal. Federal grant managers benefit because the same exclusion applies to grants, cooperative agreements, loans, and other financial assistance. Honest federal contractors benefit if competitors convicted of award-related felony misconduct are temporarily excluded. Congressional oversight committees benefit from immediate notice of agency-head waivers.

Who Bears the Burden and How

Individuals convicted of covered federal felonies bear a direct three-year exclusion from federal awards. The Attorney General must identify covered convictions and notify GSA. GSA SAM Exclusions administrators must enter and maintain the prohibitions. Agency heads using waiver authority must make written determinations and transmit them to Congress immediately. Federal award officials must incorporate the new exclusion into award checks and compliance workflows.

Key Provisions

• Creates a three-year SAM exclusion for individuals convicted of covered federal felonies tied to federal funds.
• Requires the Attorney General to notify GSA of covered convictions.
• Requires GSA to promptly enter the prohibition in SAM or a successor system.
• Provides agency-head waiver authority for warranted cases.
• Requires immediate congressional transmission of each written waiver.
• Defines covered agencies, convictions, and felony offenses.
• Requires DOJ-GSA implementation guidance within one year.